Question
A call option on APPL stock with an expiration date of January 20, 2022 has a strike price of $160. The current stock price of
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A call option on APPL stock with an expiration date of January 20, 2022 has a strike price of $160. The current stock price of AAPL is $142. The option premium is $12. If I buy this option today, which of the following statements is true? Assume each option is for 1 underlying share.
I purchase 1 APPL share at a price of $160 today.
I pay a price of $12 to the option seller.
I sell 1 APPL share at a price of $142 today.
I purchase 1 APPL share at a price of $160 today.
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A benchmark index has three stocks priced at $50, $26, and $30. The number of outstanding shares for each is 350 shares, 400 shares, and 700 shares, respectively. If the market value weighted index was 500 yesterday and the prices changed to $48, $21, and $28, what is the new index value?
458.08
600
480.28
510.05
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